Following Banco de Bogotá and Grupo Aval’s separation from its subsidiary Leasing Bogotá SA Panama, which itself is a stakeholder in BAC Credomatic, Luis Carlos Sarmiento Angulo is pursuing a strategy to segment his business interests in El Salvador and Colombia. As part of this plan, the businessman aims to gain an additional stake in BAC Holding International, a vehicle created from the spin-off, through a voluntary takeover offer.
The bid envisions purchasing between 5% and 15% of the outstanding shares of this issuer, which is expected to begin trading on the Colombian Stock Exchange (BVC). The offer price is around 291 dollars per share, with a bid current at 293 dollars for each title in the market. In support of the acquisition, a bank guarantee project was submitted by Rendifin SA, which holds a 3.6% stake in Grupo Aval.
The drive to advance this deal hinges on political and economic developments in El Salvador and Colombia. The businessman seeks to shield himself from the impact of El Salvador’s adoption of bitcoin as legal tender and to counter concerns that local electoral dynamics could ripple through business results in the region.
Sharon Vargas, market analyst at Itaú Corredora de Bolsa, commented that the ultimate objective for the holding company is to reduce the volatility that currency movements impose on the combined results of Grupo Aval and Banco de Bogotá. She added that it also makes sense for owners that a bank of comparable scale is not left with a separate subsidiary that mirrors the parent entity, arguing this shift would improve overall corporate performance.
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Sharon Vargas, Itaú Market Analyst
“The aim is to insulate Central America’s economic impact on local firms and to enable more efficient, standalone financing this year.”
The distribution of shares and the allocation among partners progressed as follows: initially, the separation between Banco de Bogotá and the bank’s beneficiary entity took effect. Concurrently, a distinction was drawn between Grupo Aval and the beneficiary enterprise of the group.
Following these steps, BAC Holding International Corp merged with these entities, expanding ownership of the Colombian financial institutions to include BAC Holding International as part of the new arrangement. This set the stage for the buyout bid.
Next, additional purchase offers are expected to receive approval next Wednesday, assuming bank guarantees are filed and verified before the BVC, unless the Colombian Financial Supervisory Authority (SFC) imposes further requirements on the bidder. Once approved by the regulator, Sarmiento Angulo will be required to publish both the bid booklet and the initial process announcement through mainstream media channels.
Bids must be issued in three separate notices within five calendar days, and the acceptance window for the offer must be communicated, with a period that cannot be shorter than 10 days and no longer than 30 working days. The bidder may extend the acceptance dates only once.
The market reaction to the plan saw shares of Grupo Aval and Banco de Bogotá trading on the BVC fluctuate. Banco de Bogotá’s stock declined sharply, while preferred variants of Grupo Aval were softer yet still faced notable movements. Despite the volatility, a deeper look at the activity suggested that the underlying value of the securities remained aligned with the proposed price tag of BAC Holding Internacionales, reflected at around 293 dollars per share during trading. These dynamics underscore how investors weigh strategic restructurings against market volatility and currency exposure.
Source attribution: Lare Publica